The 20-Point Checklist I Run Every Year to Keep My Retirement on Track

A simple, practical review I do every year to protect my pension, investments, and peace of mind - and one you can steal too!

These days, people often enjoy twenty or thirty years of retirement, or perhaps even more. An annual retirement finance review can help you make the best of your retirement. You have spent many years planning for your retirement, ensuring you have enough money to be financially secure. Now you need to keep it on track.

But financial planning is just as important in retirement as it was during your working years. Your income needs, your health, and your investments all shift as circumstances change. Even a well-funded retirement plan can gradually drift off course.

Of course, that doesn't mean you should spend all your time worrying about money. I find a sensible approach is to sit down once a year and review my financial situation. This allows me to make small adjustments to protect my income. If I am overspending, or if my investments are underperforming, or if perhaps the tax rules have changed, it is easier to fix it now rather than in five years' time. Small tweaks compound over time.

This is my checklist. You might find it helpful, even if you only use parts of it. If you are newly retired, you could benefit from establishing good review habits early. If you have been retired for a while, it is never too late to start.

I am not a financial advisor. This is just my own checklist that I find useful. Feel free to adapt it to your own circumstances. It is always wise to take advice from a qualified financial advisor.

I am UK-based, so some of the points below are UK-specific, but much of it is likely to apply to other countries.

1. Review Your Retirement Income Sources

You might have multiple income sources, including some or all of the following:

• State Pension. This should be automatic, but it is always worth checking that you are getting the correct amount. In the UK, people who have worked full-time for most of their lives will normally receive the full pension, which is a fixed amount. If you are receiving less than that, it is worth making sure you understand why.

• Defined benefit (DB) pensions. A DB pension pays you a fixed amount of money each month, usually increasing annually in line with inflation. If you receive a DB pension, check that your payments have increased correctly.

• Defined contribution (DC) pensions. In a DC pension, the contributions you made over your working life are invested on your behalf. When you retire you may have the option to either accept an annuity (a fixed amount of cash each month), or to keep your pension fund flexible, and withdrwa cash from the fund as and when =you decide to. Many people withdraw a certain amount (eg a few percent of the fund) each year to live off - that is what the money is for, after all. You may pay tax on some of the money you withdraw, and if you withdraw a large amount in one year you might have to pay a higher tax rate.

• SIPP pension. A SIPP (Self-invested personal pension) is a special type of DC pension where you get decide how the money is invested. This type of pension is more flexible, but there are also a few more things to think about. You can move your pension fund in a wide variety of different investments. It is up to you to decide if your investments are performing well, as you have the option to move them if you wish. However, it doesn't have to complicated. Many providers have general funds where your money will be invested across a variety of shares and bonds, and all you need to decide is how cautious or "adventurous" (ie risky) you want to be.

• Investments. You might have other investments in addition to your SIPP. You should review these in a similar way to your SIPP. The tax situation is slightly different. If your money is invested in an ISA, you will not usually have to pay any tax when you withdraw it.

• Part-time work or consulting income. Some people continue to work part-time after they retire. It is important to check how this income affects tax brackets or pension entitlement. Also, as part of your annual review, consider whether you still want to continue doing the work. If you don't really need the extra money, and if you don't enjoy the work, it might be time to stop.

• Rental income. If you have a rental property, or if you are renting out part of your home, it is worth checking that it still works for you. Maintenance costs, rents that don't keep up with inflation, vacant periods, and taxes all eat into rental income. If it is a separate property that you own, you might consider selling and investing the money, as it can be less hassle and you have access to the money if you need it.

2. Check Your Annual Spending

• Compare spending against last year's budget. Use bank and credit card statements to spot patterns you may have missed. But also note any one-off expenses that shouldn't be counted as "normal" spending.

• Identify areas where costs have increased. Pay special attention to housing, healthcare, and food (the categories most affected by inflation). Compare percentage increases to your income growth to see if you're falling behind.

• Separate essential spending from discretionary spending. Essentials are housing, utilities, food, healthcare, insurance. Discretionary spending is things like travel, dining out, hobbies, gifts — these are the easiest areas to adjust if needed.

3. Adjust for Inflation

• Rising food prices. Compare grocery bills year-over-year, not just month-to-month, because gradual increases can creep up on you. Consider whether shopping habits (brands, bulk buying) need adjusting.

• Utility bills. You have to stay warm and keep the light on. But it is worth checking whether you are still on the best tariff. Your usage might have changed, and new tariffs are introduced from time to time.

• Insurance premiums. Compare renewal quotes against new-customer rates. It is an unfortunate fact that insurance companies often offer the best deals to new customers while letting the price creep up, year after year, for longstanding customers. Companies like that do not deserve your loyalty. Also check if you can bundle policies to reduce overall premiums.

• Property taxes/council tax. Confirm your council tax band is still accurate. Check for available discounts. For example, if you live alone, you usually get a 25% discount.

• Healthcare costs. The NHS covers most healthcare, but you will need to budget for certain things such as eye care and dentistry. See section 7 for mor details.

4. Review Your Investment Portfolio

• Is your asset allocation still appropriate? Personally, I have most of my pension and ISA invested in managed funds from a couple of well-known UK investment platforms. They offer funds with various risk profiles. I also keep about 3 years' worth of income in interest-paying accounts and money market funds. That isn't financial advice, it is just what I personally do. But whatever you do, you will probably want to select an option that matches your risk tolerance. Everyone's situation is different, but many people find that their risk tolerance decreases with age.

• Are your investments still balanced? For example, if you have separate investments in stocks and bonds, has one become overweight? You might also need to consider the tax implications, depending on the types of investments you hold.

• Are you taking too much or too little investment risk? Too much risk can jeopardise short-term income needs, too little risk can mean running out of money too soon due to inflation erosion. A common strategy is to keep money for your immediate needs (eg two or three years) in fairly low-risk investments, with the rest of the fund in higher risk/higher return investments, but again I am not a financial advisor.

5. Reassess Your Withdrawal Rate

• Is your current withdrawal sustainable? Many retirees have an investment portfolio that may seem like quite a lot of money, but it has to last them for the rest of their lives. If they spend it too fast, they might run out of money, but if they spend it too slowly, they won't get to enjoy their hard-earned retirement. Some people aim to spend a certain percentage of the fund each year, for example 4%. So if your fund is £200,000, you should draw out £8,000. Different people use different percentages. A financial advisor should be able to help you decide what is right for you. Factor in life expectancy and any recent health changes.

• Should you reduce withdrawals after poor market performance? Selling shares after they have fallen in value means "locking in" the losses. Some people try to draw less out of their fund after a downturn. See also the next section on cash reserves.

• Consider flexible spending strategies. This goes back to the point about essential spending and discretionary spending. Some people reduce discretionary spending after a downturn, again to avoid locking in losses.

6. Review Cash Reserves

• Emergency fund balance. It is worth having a certain amount of cash readily available for emergencies. Some people aim for 6–12 months of essential expenses. The funds should be easily available but ideally in an interest-paying account.

• Have cash available for unexpected home or vehicle repairs. If you own a car or own your home, there is always the possibility of unexpected repair costs. Of course, this can form part of the emergency fund mentioned above, but you might want to keep a little extra, especially if your home or vehicle is quite old.

• Avoid selling investments during market downturns. If your money is mainly invested in stocks or bonds, it is possible that the value could drop during times of volatility. Historically, prices usually recover within a few years. However, it is best to try to avoid selling your investments while the market is down. One approach is to keep enough to cover 1–2 years of withdrawals in a low-risk investment to ride out volatility. Unlike the emergency fund, you will not need to access this money urgently. A savings account that doesn't offer instant access often pays more interest, so that can be a good option.

7. Check Healthcare Costs

In the UK, we have the NHS, so we don't typically have to worry about most healthcare costs. There is usually a small charge for prescription medicines, but currently anyone over 60 gets free prescriptions too. But there are a few areas where you might need to pay.

• Dental expenses. Basic dental charges are subsidised by the NHS, but are not totally free of charge for most people. However, if you need things like dentures or implants, private dentists often offer better options, often at substantial costs.

• Private healthcare. Although the NHS offers free treatments for most medical conditions, the waiting lists can be long - years in some cases. If your condition is causing significant pain, or restricting your life, some people consider going private.

• Long-term care. If you need social care (such as help cleaning your home), you will normally need to pay for it. If you ever need to go into full-time residential care, normally the medical aspects of that care will be funded by the NHS, but you will be required to pay for the social care (such as feeding you and dressing you if required). This can be extremely expensive, up to £2,000 per week! The money will normally be recovered from your estate after your death. Any money left over will then go to your heirs. If there is not enough in your estate to cover the total cost, the state will pay the difference, but your heir might then inherit nothing.

8. Review Insurance Policies

• Home insurance. Check that coverage limits still match your home's current value and contents. It is also worth shopping around annually, as loyalty rarely earns the best rate.

• Car insurance. Adjust coverage if you're driving less in retirement, and ask about low-mileage or senior driver discounts. And, again, it is worth shopping around for a cheaper rate

• Life insurance. Life insurance is important when you are working and have dependents. But when you are retired, it is worth considering whether you need life insurance at all. If you have no dependents, or if you have a partner who has a good pension of their own, life insurance might not be worthwhile. This very much depends on your situation - if you have a long-term life insurance policy that doesn't cost much, it might be worth keeping. If you need to renew your policy, it might be expensive. It is also worth checking if any existing policy has cash value if you terminate it. It is worth getting professional advice if the situation isn't clear.

9. Look for Subscription Creep

Most of us subscribe to various services, and quite often we get good value from them. But it is easy to end up paying every month for services you no longer use. It is worth checking periodically and cancelling any that you no longer need.

• Streaming services. Check how many services you're actually using regularly. Also, consider rotating subscriptions instead of paying for all of them year-round. For example, do you really need three streaming at the same time? It can be cheaper to watch one for a few months, then switch, so you can watch the series you like on all the services, without paying several subscriptions a month.

• Gym memberships. How often do you use the gym, and is that worth the cost. Also, look into senior discounts or community centre alternatives.

• Magazine subscriptions. Cancel duplicates or switch to free library access where possible. Consider digital-only options, which are often cheaper.

• Software renewals. Check for annual auto-renewals you may have forgotten about. Do you still use the software? Are there free alternatives (for example, LibreOffice instead of MS Office)? Or look for one-time purchase alternatives to subscription software.

• Mobile phone plans. Compare current plan costs to new customer deals. Also, consider your phone usage. Downsize data plans if usage has decreased. Consider buying a cheaper phone and getting a SIM-only deal if you no longer need a top-end phone.

10. Update Estate Planning

Estate Planning is an area where you should take legal advice, of course. But here are some points to consider:

• Review your will. Confirm it reflects current wishes, especially after major life events (death, divorce, remarriage). Check that it complies with current UK inheritance laws.

• Check beneficiaries on pensions and investment accounts. Beneficiary designations often override wills, so make sure they're current. Update after births, deaths, or changes in family relationships.

• Update powers of attorney. Confirm your chosen attorney(s) are still willing and able to act. Review both financial and healthcare powers of attorney separately.

• Review healthcare directives. Update living wills or advance directives to reflect current wishes. Ensure copies are accessible to family members and healthcare providers.

11. Review Tax Planning

Tax planning is one area where you should definitely seek expert advice if you are not sure what to do.

• Expected tax bracket Estimate total income for the year to avoid unexpected bracket creep. For example, if you are drawing funds out of a SIPP, be aware that if your total income (including your state pension) exceeds the higher rate tax threshold you will most likely have to pay the higher rate of tax on some of the income. Consider income smoothing across tax years where possible. For example, if you have some additional income one year, it might be worth drawing less out of your SIPP to avoid higher taxes.

• Pension withdrawals. Time withdrawals to minimise tax, as mentioned above. Avoid triggering unnecessary tax by withdrawing more than needed.

• Capital gains. If you are selling high-value assets, there may be ways to avoid paying more capital gains tax (CGT) than you need to, so it is worth looking into it carefully.

• Charitable donations. If you give money to charities, the money may be subject to tax relief, which means that the charity will get extra money in addition to your donation. This can usually be done via the Gift Aid scheme, which often simply requires you to tick a box on the donation form.

• Tax-efficient gifting. If you have a fairly large estate, your heirs will most likely have to pay some inheritance tax (IHT) on anything they inherit from you. This is usually 40% of everything above the threshold, so it is quite significant. One way to reduce this might be to give some of your wealth to your heirs before you die. There are strict rules. For example, it must be a genuine gift (you can't "give" your children your house but then carry on living in it rent free), and you must survive for at least 7 years after the gift is made. This, again, is a complex tax area so worth speaking to someone who knows what they are doing.

12. Check Debt

• Mortgage balance. If you still have a mortgage on your home, make sure you know the remaining term and interest rate, especially if on a variable rate. Explore refinancing if rates have dropped significantly, you might get a better rate elsewhere.

• Credit cards. Pay down high-interest balances first. If you normally pay your card in full every month, set up automatic payments (eg direct debits) to avoid late fees and interest charges.

• Car loans. Consider whether paying the loan off makes sense given current cash reserves.

• Should any debts be paid off early? Weigh the guaranteed "return" of debt payoff against potential investment growth. But also consider the peace-of-mind benefits of being debt-free in retirement.

13. Evaluate Housing Costs

• Home maintenance. Budget annually for routine upkeep (roof, boiler, appliances). Set aside funds for larger, less frequent repairs (such as a new roof or replacing windows).

• Repairs planned this year. Get multiple quotes for major projects to avoid overpaying. Prioritise repairs that prevent costlier future damage.

• Downsizing considerations. Calculate potential savings on mortgage/rent, utilities, and maintenance. Factor in moving costs (including stamp duty) and emotional considerations of leaving a long-time home.

• Energy efficiency improvements. Look into grants or rebates (such as the Boiler Upgrade Scheme). Calculate payback period for improvements such as insulation or solar panels.

14. Review Family Financial Support

• Helping adult children. Many people are struggling in the current financial situation, and if you have what seems like a large amount of money in your pension savings, you might want to help your adult children out. But, of course, you have to balance that against your own well-being. Set clear limits to avoid jeopardising your own retirement security. Also, consider loans with clear terms rather than open-ended gifts.

• Supporting grandchildren. If you want to support your grandchildren, explore tax-efficient options like Junior ISAs (UK). But, again, balance generosity with your own long-term financial needs.

• Gifts that could affect your own retirement security. Recalculate your retirement plan after any large gifts. Also be aware that, for certain means-tested benefits, you may be treated as if you still owned the wealth you gave away. You can't give all your money to your family and then claim benefits as if you have nothing (that is known as deprivation of capital).

15. Plan for Large Upcoming Expenses

• Vacations. Book early to lock in lower prices and spread costs over time. Set aside a dedicated travel fund separate from everyday spending.

• Home improvements. Get quotes early in the year to plan cash flow around project timing. Prioritise projects that improve safety or accessibility as you age.

• Vehicle replacement. Research reliability and running costs, not just purchase price. If you have two vehicles (one for yourself and one for your partner), do you still need both? Consider whether you still need a car at all.

• Weddings. If you are helping children or grandchildren fund their wedding, set a clear contribution limit in advance to avoid overspending. Discuss expectations openly with family to avoid misunderstandings.

• Major anniversaries. Plan and budget for celebrations well in advance. Consider experiences over material gifts for more meaningful, cost-effective celebrations.

16. Protect Against Scams

• Review online security. Use strong, unique passwords and enable two-factor authentication where possible. Be cautious of unsolicited calls or emails claiming to be from banks or pension providers.

• Check financial accounts for unusual activity. Set up account alerts for transactions above a certain threshold. Review statements monthly, not just annually.

• Update passwords. Use a password manager to generate and store secure passwords. Change passwords immediately after any suspected data breach.

• Learn about current retirement scams. Stay informed about pension scams. Share scam awareness with family members who may also be targeted.

17. Review Charitable Giving

• Are donations still affordable? Reassess giving levels against your current income and expenses. Consider percentage-of-income giving rather than fixed amounts to stay flexible.

• Tax-efficient ways to give. As mentioned earlier, Gift Aid allows some of your taxes to be paid to charities you support.

• Legacy giving options. Explore leaving a charitable bequest in your will. Consider setting up a donor-advised fund or charitable trust for lasting impact.

18. Update Important Documents

• Password list. Store securely using a password manager or encrypted document. Share access instructions with a trusted family member or executor.

• Financial account information. Keep an updated list of all accounts, institutions, and approximate balances. Include pension providers, investment platforms, and insurance policies.

• Emergency contacts. Update contact details for family, doctors, and financial advisers. Include contact info for your solicitor and executor.

• Digital assets. List online accounts, social media, and digital subscriptions. Note instructions for what should happen to digital assets after death. For example, if you are very active on a forum where you have online friends, would you want them to be notified?

• Location of important documents. Keep wills, deeds, and insurance policies in a known, secure location. Inform your executor or a trusted person where these documents are kept.

19. Set Financial Goals for the Next 12 Months

• Savings targets. If you have a fixed income and relatively little in investments, you might need to save for things such as annual holidays or a new car. Set specific, measurable savings goals rather than vague intentions. Automate savings contributions where possible to stay consistent.

• Travel plans. Prioritise trips based on health, mobility, and financial capacity. Book in advance to take advantage of early pricing and payment plans.

• Home projects. Rank projects by necessity versus desire. Align timing with cash flow and seasonal contractor availability.

• Investment objectives. Set clear goals for growth, income, or capital preservation this year. Review whether your objectives still align with your risk tolerance.

• Lifestyle priorities. Reflect on what brought the most joy and value last year. ** Adjust spending to align more closely with what matters most to you.

20. Schedule Your Next Annual Review

• Put a recurring reminder on your calendar. Set a digital calendar alert that repeats each year automatically. Choose a date tied to a memorable event (birthday, New Year) for consistency, but avoid times when you might be very busy.

• Choose the same month each year. Align the review with key dates like tax year-end. Avoid scheduling during holidays or other busy times.

• Involve your spouse or partner if applicable. Ensure both partners understand the full financial picture. Discuss and agree on any changes together before implementing them.

• Consider meeting with a financial adviser if your circumstances have changed. Seek professional advice after major life events (health changes, inheritance, widowhood). Use an adviser to stress-test your plan against new market or tax conditions.

Conclusion

• Retirement planning doesn't stop when you retire. Ongoing management is just as crucial as the initial planning phase. Treat your retirement finances as a living plan, not a one-time decision.

• A yearly review can help you stay financially secure, adapt to changing circumstances, and enjoy greater peace of mind. Regular reviews reduce the risk of financial surprises later in retirement. Peace of mind allows you to focus more on enjoying retirement, not worrying about it.